This map shows the site of a proposed Hilcorp well pad off the Old Sterling Highway. (Illustration provided)

This map shows the site of a proposed Hilcorp well pad off the Old Sterling Highway. (Illustration provided)

Borough proposes oil and gas leases in Anchor Point

Lower Kenai Peninsula residents have a chance to learn about proposed oil and gas leases on Kenai Peninsula Borough land in the Anchor Point area at an upcoming Anchor Point Advisory Planning Commission meeting

At the Oct. 23 Kenai Peninsula Borough Assembly meeting, the assembly introduced an ordinance to lease parcels in the Anchor Point area to Hilcorp for oil and gas subsurface rights. Assembly member Willy Dunne, who represents Anchor Point and other parts of the lower Kenai Peninsula, pulled the ordinance from the consent agenda for further discussion.

It will be on the table for discussion at Anchor Point’s planning commission meeting at 7 p.m. Wednesday, Nov. 7, at the Anchor Point Chamber of Commerce.

Ordinance 2018-34 would lease oil and gas rights at a minimum 12.5 percent royalty. One of the lease sites is near Chapman Elementary School on land now used as a solid waste and recycling transfer site. Called the Sea View Pad, the proposed Hilcorp well site is on land off the Old Sterling Highway.

“I wanted to let folks know, especially folks down in the Anchor Point area, that there is borough code that requires that leases such as this would not include surface entry,” Dunne said at the meeting. “It’s sub surface only, even though the lease language does make reference to surface activities. One of the concerns I heard from people was that perhaps we need to negotiate a better deal on this.”

In a follow-up interview, Dunne said borough Mayor Charlie Pierce told him he would like to negotiate a better royalty percentage.

Dunne said he’s received many questions about the ordinance and said the public deserves a little more information.

“It caught people by surprise,” Dunne said. “It went through the state process, but of course without Coastal Zone Management authority anymore, the public isn’t often aware of what’s going on.”

The 12.5 percent royalty is the minimum required under borough code.

The ordinance comes up for a public hearing at the Nov. 20 assembly meeting. Assembly member Kenn Carpenter said a hearing would be set up in the Homer area before the 20th.

More details on the Anchor Point Advisory Planning Commission meeting will be posted soon on the KPB Planning Department page.

Reach Victoria Petersen at vpetersen@peninsulaclarion.com. Reach Michael Armstrong at marmstrong@homernews.com.

More in News

A cruise ship is docked in Seward, Alaska, on Wednesday, May 25, 2022. (Camille Botello/Peninsula Clarion)
Cruise passengers encouraged to test before docking in Seward

The request comes as new COVID cases are increasing in Alaska

In this July 13, 2007, photo, workers with the Pebble Mine project test drill in the Bristol Bay region of Alaska, near the village of Iliamma. The U.S. Environmental Protection Agency is proposing restrictions that would hinder plans for a copper and gold mine in Alaska’s Bristol Bay region. It is the latest in a long-running dispute over efforts by developers to advance a mine in a region known for its salmon runs. (AP Photo/Al Grillo, File)
Restrictions proposed in Pebble Mine fight

Critics of the project called the move an important step in a yearslong fight to stop the mine

Armands Veksejs, Hager Elserry, Dady Thitisakulwong, and Haewon Hong attend a farewell potluck barbecue in Nikiski on Monday, May 23, 2022. (Camille Botello/Peninsula Clarion)
‘A life in a year’

Foreign exchange students receive send-off in Nikiski

A man fishes in the Kenai River on July 16, 2018, in Soldotna, Alaska. (Peninsula Clarion/file)
Ninilchik River and Deep Creek to open sport fishing

Sport fishing will be open for three upcoming weekends

Sen. Peter Micciche, R-Soldotna, stands in the Peninsula Clarion offices on Wednesday, May 25, 2022, in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Micciche will not seek reelection

His announcement comes a week after the end of the 32nd Alaska Legislature

The Boney Courthouse in downtown Anchorage, across the street from the larger Nesbett Courthouse, holds the Alaska Supreme Court chambers. (Photo by Yereth Rosen/Alaska Beacon)
Alaska redistricting board picks new Senate map after Supreme Court finds a gerrymander

The board could continue work and possibly write a different map for the elections from 2024 onward

A landslide blocks Lowell Point Road in Seward, Alaska, on Sunday, May 8, 2022. (Photo courtesy City of Seward)
Lowell Point Road to reopen Friday

Intermittent blasting work will continue next week

Members of the Kenai City Council participate in a council meeting on Wednesday, March 16, 2022 in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Boys and girls clubs land donation postponed

The issue will be back before the body on June 1

Most Read